In my approach to the stock market, strategy is far more important than prediction. I focus on reacting to developments in the market and individual stocks rather than trying to forecast what might happen in the long run.
Proper timing is the key to success but it is also very helpful to have some good stocks to watch. I often find the best approach is to buy a small position initially and then track it and add to the position as it develops.
My favorite stock for 2019 is Aimmune Therapeutics, Inc. (AIMT) . Aimmune is a biotechnology company focused on developing products for the treatment of peanut and food allergies using a desensitization approach. It uses a desensitization technique to deal with the issue.
On Dec. 21, 2018, AIMT submitted an application for a biological license for its AR101 immunotherapy treatment of peanut allergy in children aged 4 to 17. The company asked for priority review and will hear if it is granted within 60 days from the date of the application, which will be around the end of February. If granted, the company will hear from the FDA in six months if the application is approved.
On Dec. 20, DBV Technologies S.A. (DBVT) withdrew its FDA application for a competitive product due to "deficiencies" in its filing. A Piper Jaffray analyst said that this will clear the way for the AIMT application and reiterated his $60 target on AIMT stock following the news.
On Jan. 4, Aimmune announced a loan agreement for $170 million from a subsidiary of global investment firm KKR & Co. KKR. This loan will be used to fund commercialization of AR101.
Previously the company had received a large investment from Nestle (NSRGY) of around $275 million. Nestle also owns approximately 18.9% of its outstanding stock.
Aimmune now has around $500 million in cash to fund the roll out of AR101 later this year.
The stock has been under pressure with the biotechnology sector, falling from a high around $40 early in 2018 to the current price around $25. This decline has occurred despite a steady supply of positive news.
In addition to that $60 price target from Piper, there is a $64 target from Cantor Fitzgerald. The Piper analyst also believes that Aimmune could be a potential takeover candidate.
Aimmune recently filed to expand its AR101 program to children under the age of 4 and has submitted an application for AR201 for the treatment of egg allergy.
The company has a large market for its AR101 therapy and is systematically taking the necessary steps to have the product on the market in the second half of the year. If Aimmune executes the stock should see substantial appreciation At some point anticipation of the good news should kick in but it may not make any big move in the near term.
Check out more of Real Money and Real Money Pro's 2019 Picks here:
Stephen Guilfoyle: This Cloud Software Name Is My Top (Long) Stock Pick for 2019
Bret Jensen: My 2 Top Stock Picks for 2019
David Butler: United States Oil ETF Is My Pick for 2019
Ed Ponsi: Merck Is My Top Stock Pick for 2019
Paul Price: Manpower Is My Stock Pick of the Year for 2019